Here’s the financial breakdown:
My Income: $125k (Salary)
— I get a $3050 check twice a month, with FSA and HSA deductions.
Her Income: $81k (Salary)
— She gets a $2200 check bi-weekly and around $400 in mileage monthly.
We bought our house for $530k a year ago with a VA loan, now owe $542k. Zestimate says it’s worth $570k, but I doubt we could get that much.
House Payment: $3,720
Debt Summary :
Capital One Card: $9,500, $333
Amazon Chase Card: $4,650, $141
USAA Unsecured Loan: $24,975, $596
My Car: $10,751, $196 (worth $8,000)
Wife’s Car: $37,375, $610 (worth $32,000)
NFM: $3,247.5, $115
Discover (wife’s card only): $4,785, $150
My Student Loans: $25,000, $253
Wife’s Student Loans: ~$40k, ON PAUSE, STILL IN SCHOOL
We have no savings after I dipped into my 401k when she cheated. I’m thinking of walking away from the house to save up some money and figure things out. I know my credit will take a hit, but I feel stuck.
Do you think it’s a good idea to talk to our realtor and explore other options? I’d appreciate any advice you can give me.
Cheers,
Response from THE MONEY MINDER:
Hello There,
I’m sorry to hear about the tough situation you’re facing. It sounds like you’ve been through a lot and have been doing your best to keep things afloat. Given the financial details you’ve shared, it’s clear that your current debt situation is a major concern.
Firstly, walking away from the house might seem like a viable option to relieve some financial strain, but it’s crucial to consider the long-term implications and potential impact on your credit score. I would advise reaching out to a financial advisor or credit counselor to explore all alternatives before making such a decision.
In terms of practical steps, it’s essential to prioritize paying off high-interest debts such as credit cards and personal loans. Creating a detailed budget outlining your income, expenses, and debt obligations can help identify areas where you can cut back and allocate more funds towards debt repayment.
Considering your income level, it might be feasible to negotiate with creditors for lower interest rates or explore debt consolidation options to streamline your payments and potentially reduce overall interest costs.
Furthermore, seeking legal advice regarding your options for divorce and property division is crucial to ensure you’re making informed decisions that align with your financial goals and priorities.
Ultimately, focusing on building a solid financial foundation, paying off debts, and creating a sustainable budget will help you regain control of your finances and work towards a more stable future.
If you need further guidance or support in navigating this challenging time, don’t hesitate to reach out to financial professionals who can provide personalized advice and solutions tailored to your specific situation.
Take care, and remember that taking proactive steps towards financial stability will benefit you in the long run.
Farewell from THE MONEY MINDER
